A Competitive Firm Produces Output Using Three Fixed Factors and One

question 1

Multiple Choice

A competitive firm produces output using three fixed factors and one variable factor. The firm's short-run production function is q = 305x - 2x², where x is the amount of variable factor used. The price of the output is $2 per unit and the price of the variable factor is $10 per unit. In the short run, how many units of x should the firm use?

• A) 37
• B) 150
• C) 21
• D) 75
• E) None of the above.

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Definitions:

Mechanical Stimuli

Physical forces that influence biological processes in organisms, such as pressure, stretch, and flow.

Phototropism

The orientation of a plant or other organism in response to light, typically towards the source of light.

Light

A form of electromagnetic radiation that is visible to the human eye and is responsible for the sense of sight.

Light-activated Kinases

Enzymes that become active in response to light exposure and play important roles in various biological signaling pathways.